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The Ubiquity of Services:
The Visibility Challenge:
The Prevalence of Waste: Substantial work in process makes services slow, which drives up costs and makes them prone to poor quality.
Other common wastes include people moving around chasing information, documents looping back and forth where items are being clarified, interruptions etc.
The Relative Absence of Hard Data:
Applying Lean Six Sigma to Improve Services
Define Improvement Targets on the Basis of VOC: Reactive methods are those where the customer takes the initiative through complaints, compliments, enquiries, web page hits, emails and the like. Reactive methods are good at detecting service weaknesses as customers will most likely contact you when they have problems.
Proactive methods are those where you take the initiative to gather customer information and include surveys, questionnaires, focus groups etc.
This information ensures that improvement targets you set are based on customer needs.
Make the Relevant Processes Visible:
For each activity in the process, information required in creating the value stream map include estimated cost per activity, process time, queue time, change over time, demand rate, complexity (number of different services processed at the activity), uptime and defects/rework. This data should be collected based on at least one week of observation. The resulting map is known as a complexity value stream map.
Determine the Time Traps (to prioritise projects):
Analyse the Time Traps to Determine their Causes:
Apply Appropriate Tools to Improve the Process:
Huge opportunities translating to significant cost and time savings, along with quality improvements, exist in many service operations where typical process efficiencies are below 10% as against world class levels of 25-50%. |
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